Another catchy name, section 9(2B) rights refer to a section of the Pension Scheme Act 1993. They are benefits in a contracted-out-salary-related scheme (COSR) which satisfies the ‘reference scheme’ test.


Section 9(2B) rights are the successor to Guaranteed Minimum Pensions, as these no longer accrued after 5th April 1997. They detail a requirement to leave 50% of any pension to a surviving spouse or partner and must increase in payment each year up to a maximum of 2.5% of RPI. They are a way (as with GMP) of providing benefits in place of the State Second Pension (previously SERPS) for those who chose to contract out a section of their national insurance contributions.


The benefits of such a scheme will usually require qualified financial advice by an adviser with pension transfer qualifications. Due to the benefits being difficult to replicate if a cash value were moved to another scheme, it’s often deemed not beneficial to transfer.


There are however instances where a member my wish to forgo these benefits, and prefer instead to take a cash transfer. These may include

  • Having no spouse/partner
  • Not needing the regular income offered by the Section 9(2B) rights, because of other pensions meeting income needs.
  • Needing access to the transfer value as a lump sum to pay pressing debt
  • Wanting control over the assets to take the income more flexibly
  • Wanting the opportunity to pass the assets a beneficiary other than their spouse/partner